Yesterday, Brother Bo sent out the latest stocks update to the members of the Truly Rich Club.
If you have been monitoring the stock market lately, you will notice that stock prices have been going up steadily, to the point where the PSEi stayed above the 8,000 level. A lot of stock investors have been ecstatic that their portfolios have been increasing.
Brother Bo’s recommendation is quite the opposite, in his words, we should “temper our excitement”. As I have said in previous posts, we, as stock investors and not traders, should be happy when everyone else is panicking that the stock market is going down, that’s the time we can buy stocks at huge discounts. When stocks go up, our purchasing power goes down, because we buy stocks at higher prices.
With the patience and discipline of buying stocks monthly, we are able to lessen the impact of the stock price volatility and after a few years, our patience will bear fruit. Our investments will pay us back for our patience.
So as Brother Bo said “temper your excitement”, doesn’t mean that you can’t be happy with your portfolio increasing, but just remember that we’re happier when stocks are cheap, we can buy more, using our strategic averaging method, which the Truly Rich Club guides us with.
Hope you have a good week ahead, and each week getting closer to becoming financially free!